EUR/USD: technical analysis – August 1, 2012

The EUR/USD pair has continues moving broadly sideways although now it has hit resistance from the monthly pivot and will probably fall from here to support at 1.2215. A stronger move below 1.2215 – which is the neckline for an H&S pattern on the hourly – would target 1.2030. A break higher on the other hand is also possible, with the trend-line at 1.2370 providing an initial target. A decisive breakout at 1.2400 could begin a whole new cycle higher and provide the foundations for an intermediate level reversal.

Written by Forex4you